The Effect of Foreign Loans, Exchange Rate of Rupiah/ USD, Inflation, Fed Rate, and Exports to Indonesia's Economic Growth

1Edy Juwono Slamet, Muryani, M. Khoerul Mubin, Pelangi Dewi Utami

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Abstract:

Indonesia is one of the countries experiencing economic growth problems. The purpose of this study is to examine and analyze the effect of foreign loans, the exchange rate of rupiah/ USD, inflation, the Fed Rate, and exports to Indonesia's economic growth. The method of research in this study is ECM with period 2004 quarter I-2016 quarter IV. The conclusion is that in the long term, the variable of rupiah/USD exchange rate(X2) has a significant negative effect on economic growth, The Fed Rate(X4) has a significant positive effect on economic growth, and exports(X5) have a significant positive effect on economic growth, while in the short term variable exports(X5) have a significant positive effect on economic growth.

Keywords:

Economic growth, Foreign loans, Rupiah/USD exchange rate, Fed rate, Inflation, Exports, ECM.

Paper Details
Month3
Year2020
Volume24
IssueIssue 7
Pages919-927